Zillow Group Class A (ZG – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Maria Ripps from Canaccord Genuity maintained a Hold rating on the stock and has a $86.00 price target.
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Maria Ripps has given her Hold rating due to a combination of factors influencing Zillow Group’s performance. While Zillow posted stronger than expected results in the fourth quarter, with both revenue and profitability exceeding forecasts, the outlook remains cautious due to the volatile housing market. The company’s strategic initiatives, such as expanding Enhanced Markets and forming a partnership with Redfin for multifamily listings, are promising, but their full impact is expected to materialize over the longer term.
Despite the positive signs of strategic progress, the near-term outlook for Zillow reflects challenges, with the first quarter guidance coming in below market expectations. The subdued housing market continues to pose a risk, although Zillow anticipates steady revenue growth and margin improvements in the coming years. The Hold rating reflects the balance between Zillow’s ongoing strategic advancements and the uncertain market conditions that could impact its near-term financial performance.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $84.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZG in relation to earlier this year.